Financial Glossary

Annual Report

A voluntary report issued by an organization that provides financial data and describes its program for a given year.

Base Salary

The total annual salary for an individual. This information is provided for each staff position working on a grant that is funded by RWJF.

Budget Period

Usually a 12-month period in a multi-year budget, but it may be more or less than twelve months. For example, a 22-month grant may have two budget periods: one of 12 months and one of 10 months.

Budget Period Balance

See Variance.

Budget Preparation Guidelines

A document that outlines the budget format to be used, and information to be provided, when submitting a proposal to RWJF.

Budget Revision

A request to revise or reallocate line item amounts within an approved budget and/or incorporate unused funds from one year into the budget of another year.

Carryover Funds

Unused funds remaining at the end of a budget period that are applied to a subsequent budget period or used to extend the award.

Challenge Grant

A grant that is made on the condition that other monies are secured, either on a matching basis or via some other formula, usually within a specified period of time, to stimulate giving from other sources.

Donee

See Grantee.

Donor

See Grantor.

Due Diligence

The degree of prudence that might be properly expected from a reasonable person. For grantmaking, reviewers exercise due diligence by providing a thorough review of relevant documents.

Endowment

Funds given with the requirement that the principal be maintained intact and invested to create a source of income for a not-for-profit organization.

Expenditure Responsibility

When a private foundation makes a grant to an organization that has not been determined by the Internal Revenue Service (IRS) to be a tax-exempt public charity, federal income tax law requires the foundation to impose certain additional requirements on the grantee. For example, expenditure responsibility grantees must file narrative and expenditure reports based on their fiscal year and must specifically report income earned on grant payments. The tax regulations also require the grantor to report on expenditure responsibility grants to the IRS.

Extension of Award

To lengthen the grant period beyond the original end date. It is also referred to as a no-cost extension.

Extension of Due Date

To extend the due date of a report or other information beyond the original date. For example, if an annual narrative report is originally due August 31, 2009, but will not be completed until late September, an extension of the due date may be requested for September 30, 2008.

Final Reports

The final narrative report is submitted at the end of a grant and summarizes project accomplishments, challenges, impact and lessons learned during the grant. RWJF has a specific format for this report. The final financial report is a report of expenditures for the last year of a grant.

Financial Report

A report detailing how funds were used by an organization receiving a grant. In general, the report should be in the same format as the approved budget. A form is prepared by RWJF and sent to the grantee with the initial payment.

Form 990/Form 990PF

The IRS forms required to be filed annually by public charities and private foundations respectively.

Full-Time Equivalency (FTE)

The percentage of time each staff person will spend on a project funded under a grant. For example, if the project director will be spending one fourth (1/4) of his/her time on the project during the first year, the FTE would be .25 or 25 percent.

Grant

An award of funds to an organization to undertake charitable activities.

Grant Income

Income earned on grant payments made by RWJF.

Grant Monitoring

The ongoing assessment of the progress of the activities funded by a grantor, with the objective of determining if the terms and conditions of a grant are being met and if the goal of the grant is likely to be achieved, and if specific assistance could be helpful.

Grant Year

See Budget Period.

Grantee

The organization that receives a grant directly from RWJF.

Grantor

The organization that makes a grant.

Guidelines

Procedures set forth by a funder that grant seekers should follow when submitting a proposal, reporting on a grant or fulfilling other requirements.

Identification or I.D. Number

The RWJF unique number assigned to each proposal that is carried forward to identify the project upon award.

Indirect Costs

Those costs that are not easily identified but are necessary to conduct the grant, such as payroll processing, accounting support, human resource department costs, etc. It is also referred to as overhead. The RWJF standard rate is 12 percent.

In-Kind Contribution

A contribution of equipment, supplies, spare services, or staff time as distinguished from a monetary grant or contribution.

Interest Income

See Grant Income.

Matching Funds

The amount donated or contributed toward a project during a specified time period that matches grant funds on a one-to-one basis or according to some other formula. Matching funds may be cash or an in-kind contribution. Matching funds are required under challenge grants.

Narrative Reports

Written progress reports in a specific format that are required by RWJF at the end of each budget period and at the end of the grant period. Annual narrative reports address the activities and accomplishments for a particular budget period. The final narrative report provides a summary of the entire grant period.

No-Cost Extension

See Extension of Award.

Overhead

See Indirect Costs.

Payout Requirement

The minimum amount that private foundations are required to expend for charitable purposes (including grants and, with certain limits, the administrative cost of making grants). In general, a private foundation must meet or exceed an annual payout requirement of 5 percent of the average market value of its total assets.

Percentage Spent

The ratio of expenditures reported against the Approved Budget Amount shown as a percentage. For example, expenses of $10,000 against a $40,000 line item would have a percentage spent of 25 percent.

Program-Related Investment (PRI)

A loan or other investment made by a private foundation to another organization for a project related to the foundation's stated purpose and interests.

Reporting Guidelines

The format and type of reports required by RWJF once an award is made.

Regranting

Grants awarded and monitored by another organization on behalf of RWJF.

Restricted Funds

Assets or income that are restricted in use. Examples are government and private grants and contracts, pledges, gifts and endowments containing stipulations made by a donor as to allowable use.

Special Opportunity Grants

Grants awarded from a special fund for promising proposals and ideas that fall outside existing strategic objectives but have the capacity of making a difference in a particular program or initiative.

Transfer Grant

The shifting of responsibility for conducting grant activities from one organization to another. Justification is required for the transfer and both organizations involved must agree to the transfer.

Variance

On the RWJF financial reporting form, the dollar difference between the Approved Budget Amount column for a budget period and the expenditures reported for that period.